Over the weekend, the Egyptian steel market has seen another increase in domestic prices both for flats and rebar. Local market leader Ezz Steel has increased its offers by EGP 2,500/mt compared to the previous offer levels, which means a rise of around $40/mt on US dollar basis. However, it is believed that the supplier has taken this step in order to offset currency fluctuations, while many assume that the uptrend is also supported by the decent demand currently seen in Egypt.
The new Ezz Steel prices for rebar have been set at EGP 44,500/mt ex-works or around $690/mt ex-works, while its HRC is available at EGP 45,500/mt ($705/mt) ex-works. As a result, the supplier has kept the US dollar price-equivalent at the previous levels since the unofficial exchange rate has dropped from $1 = EGP 53.5 to $1 = EGP 56.5. Some sources report that the demand for both longs and flats is still quite good in Egypt, while exports from the country remain active, thus supporting domestic pricing.
The most recent rebar export offers have been reported at $600-610/mt FOB and up to $620/mt FOB for some destinations, while HRC has been on offer at $690-700/mt FOB. In fact, lately there have been deals for lots of around 20,000 mt of HRC to Turkey and Italy at $705-707/mt CFR and $730-735/mt CFR, respectively.